Bali News

Early 2009 people seemed pessimistic about Bali and national economy, reflected by consumer confidence index for the three and six months ahead which only recorded at 73.83 and 72.25 consecutively in January. The figures increased up to 87.42 and 90.17 in February then 88.25 and 89.75 in March.

A survey conducted by Bank Indonesia in the first quarter of 2009 concluded that increasing consumer confidence index reflected that peoples pessimism has been fading away. Whilst in January 2009 Denpasar recorded -0.21% deflation, respondent of the survey remained pessimistic that price on goods and services would decrease. Quite contrary, retail merchants believed that economy in one and three month period would increase.

“It was also a resuld of decreasing impact of global economic crisis. Additionally Bali economy has been significantly supported by tourism industry which recorded significant growth”, head of Bank Indonesia office in Denpasar, Viraguna Bagoes Oka told the press. The conclusion was supported by confidence that the pressure of price increases withing one to six months period as an impact of global economic crisis bringing inflation of 0.98% and 1.35% in February and March 2009.

During the first quarter of 2009 consumer believes that price of food, education, recreation, and sport would increase. On the other side availability volume of food, water, electricity, gas, fuel, transportation, communication, and services recorded some increases which indicated demand pull inflation, which was clearly shown by increasing price on food due to significant increase of demand. However March 2009 shown opposite situation, increase of price resulted by decreasing suply of housing, water, electricity, gas, food, and health brought cost push inflation.

People tends to believe that the period was not the right time for purchasing long lasting products due to uncertain economic condition resulted by global economic crisis. However sales on motor vehicle, car and motor cycle, kept on increasing both in volume and price.

Average increase of volume and price during the first quarter of 2009 was recorded at 0.06% and 0.09% consecutively. On the other hand, people remained pessimistic about potential increase of job availability.

Tourism in general shown positive picture. Number of visiting foreign tourists during the first quarter of 2009 increased by 3.66% compared to the same period of previous year. The increase was contributed mainly by Chinese tourist which recorded 55.62% increase between the two periods. Length of stay has also increased up to 3.72 days. Whilst the visitors was dominated by profession group of professionals, administration, government employees, and military, their main objective was leisure. Whilst most of them chose hotels as for their accommodation, hotels popularity has been eaten up by other accommodation facilities including Bali villas.

Unfortunately increasing number of visitors and their length of stay did not bring an increase to employment. Permanent employment decrased whilst temporary employment increased at about similar procentage of 6%.